| George was a highly specialized Internet | | | | George contacted me through the Taxes Will |
| Marketing Computer Geek. | | | | Travel web site. He explained what his |
| | | | problem was. I asked who his clients were |
| Every small to large size company who | | | | and how much would he be billing his clients |
| understood the importance of e-commerce was | | | | eachweek? He was hesitant because he was new |
| looking for someone with his skills. | | | | in business and had no credit references, |
| However, when their HR Department called the | | | | except his student loan. I explained that |
| Temporary Staffing Agency that he worked for | | | | his credit was not an issue, that the |
| the Employers would request a Computer | | | | Financing |
| Programming person with "All" the necessary | | | | |
| experience in Computer Programming Languages. | | | | Company would be more interested in who his |
| | | | client's were. (His client list read like a |
| The staffing agency lived by the motto that | | | | Whose Who in the Corporate World) When I |
| the customer is always right and surely these | | | | explained there would be "no problem" I could |
| companies knew what kind of temporary | | | | tell he did not believe me. He was polite and |
| contract worker they needed! | | | | ask how anyone could get a Line of Credit for |
| | | | $100,000 without a credit check or Financial |
| Wrong. It took them a couple months to | | | | statements. I explain to him that his |
| realize that a Computer Programmer and an | | | | "Customer's" credit was the important factor |
| Internet Marketing person were two different | | | | and as long as he had an Invoice, I could |
| animals. They did not understand that the | | | | find a Lender that would wire the monies into |
| Search Engine 'Gods' deal in "formulas" They | | | | his account within 48 hours. He said "OK", |
| didn't quite understand that no matter how | | | | but I could tell he was not sure about me or |
| many computer programming languages you could | | | | what I had said to him. |
| write that did not mean you understood how to | | | | |
| increase the number of web site visitors to | | | | I told him that I would have one of the |
| 25,000 in one week and to 50,000 the next | | | | Vice-president's of one of the major |
| week. | | | | companies that provide Invoice, Lines of |
| | | | Credit to Staffing Agencies contract him |
| George knew he had to do something, he had | | | | later that afternoon. |
| learned that the way to riches was to find a | | | | |
| need and fill it. And there clearly was a | | | | As I hung up the phone, I was hoping my |
| need for a Staffing Agency who could provide | | | | contract would be available to talk to George |
| skilled and professional Internet Marketing | | | | as soon as possible. George needed to hear |
| persons to the Corporate Worldat a reasonable | | | | someone from the "top" say that there should |
| hourly rate. | | | | be 'no problem.' I knew I had to move fast. |
| | | | As usual Mr. X was available to talk to my |
| George did his homework; there was room at | | | | client that afternoon. George was instructed |
| the top of the Temporary Staffing Industry | | | | to fax information to the company that I had |
| for him. Yes, a lot of the larger companies | | | | selected for him based upon his needs, and |
| were hiring PR firms to do their Internet | | | | was able to Factor over $70,000 in Invoices |
| Marketing, but the PR Firms needed to hire a | | | | that same week. |
| new type of marketing person. These new type | | | | |
| of marketing persons had to be computer | | | | The Financial company wired the monies into |
| gurus. It did not much matter that they had | | | | his account and he was only a day late with |
| never written a press release a day in their | | | | his payroll -- Of course we blamed it on the |
| life, it only mattered that they understood | | | | mail! |
| Google ranking algorithm and Froogle's | | | | |
| (Google's cousin) way of life. | | | | George's need to hire Employee's to handle |
| | | | the increasing number of contracts that his |
| George had every thing in place; he had | | | | small staffing agency was getting was the |
| collected dozens of his computer geek friends | | | | reason for his need to do what we call |
| who wanted to work independent contract jobs | | | | "Factoring" or Accounts Receivable Financing, |
| once or twice a week. He trained them in the | | | | or Invoice, Line of Credit. |
| ways of the search engine spiders, SEO, link | | | | |
| popularity and other necessary task. There | | | | The Pilgrim's journeys to America were |
| was just one problem, and that's how I meet | | | | financed by advances from a Factor who |
| George. | | | | provided the funds to pay for the journey. |
| | | | The Pilgrims repaid the money with earnings |
| George's small staffing business begin to | | | | from America. Factoring to this day is an |
| grow faster then his Accounts Receivables. | | | | extremely common business practice in Europe |
| | | | whereas many American business men have never |
| George did not have the cash flow to pay his | | | | heard of it. |
| contract workers until the corporations paid | | | | |
| him. Even after he invoiced his corporate | | | | Factoring is the selling of your accounts |
| client's it would take 30 or more days to | | | | receivable for cash versus waiting 30-60 or |
| receive a check. Since there were about 20 | | | | 90 days to be paid by your customer. When you |
| close friends working with George, there had | | | | provide a Factoring company with copies of |
| been no real problem. But now, there were | | | | your invoices, the Factoring Company uses |
| dozens more clients' who needed his services | | | | your invoices to make a loan to your company. |
| and he had no choice but to hire "real" | | | | It is a simple process and can be automated |
| employees. | | | | after the first transaction. |
| | | | |